Print Edition - 2014-07-08 | MONEY
Local plastic products fulfil 75pc of demand
Jul 7, 2014-
Nepal is on track to become self-sufficient in plastic products with locally manufactured goods fulfilling more than 75 percent of the country’s requirement, said traders. They said that the focus put by manufacturers on supplying light and durable products at reasonable rates had helped the industry to make rapid strides. The domestic plastics industry is estimated to be worth Rs 25 billion and has an annual growth rate of 5 percent. Amit Rathi, executive director of Bagmati Plastic Industries, said that domestic products had largely started replacing imported products in recent years.
Bagmati manufactures 200 varieties of plastic products for household use like jugs, buckets, lids, jars, pet bottles, basins and drums. The company recently launched eight new ranges of high durable products including jugs, buckets and basins.
Meanwhile, Purushottam Shrestha, sales manager at Panchakanya Plastic Industries, said their sales had been growing by around 25 percent annually. “Plastic pipes and fittings are being widely used in various sectors including houses, apartments and drinking water supply management,” he said.
Panchakanya manufactures HDP, PVC, PPR and CPVC pipes and fittings. Shrestha said that Nepal was self-sufficient in HD pipes, bags, pet bottles and packing materials.
“A few years ago, Nepal used to import GR iron pipes, but the situation has changed now,” he said, adding that use of plastic pipes had been growing rapidly.
Nepal’s imports of pipes and fitting decreased 2 percent in the first 10 months of current fiscal. Shipments amounted to Rs 655.8 million compared to Rs 670.6 in the same period last year, according Nepal Rastra Bank statistics. Total imports of plastic products in the first 10 months were valued at Rs 1. 7 billion, said the central bank.
Meanwhile, Nawaraj Bhattarai, assistant manager of Hilltake Industries, said sales of their plastic water tanks in the Kathmandu valley amounted to 200 units daily. “Nowadays, people are using plastic water tanks instead of metal tanks,” he said.
Hilltake’s main products are water tanks, dustbins and road dividers. Hilltake tanks are available in sizes ranging from 200 litres to 10,000 litres.
Traders said that the government should raise the customs duty on imported plastic products to discourage their use and promote the local plastic industry.
“Nepal’s plastic industry has the potential to grow further, but power outages and labour problems have been holding it back,” said Rathi. “High production costs have made it difficult to compete with imported products, particularly those from India.”
Published: 08-07-2014 09:34